2020-w45 - 16 May 2020

Noko Phineas Masipa to ask the Mr N P Masipa to ask the Minister of Finance

(a) Whether the Land Bank has any policies and plans in place that mitigate against the risk of land indebted to the Land Bank that becomes subject to expropriation without compensation in accordance with section 25(1) of the Constitution of the Republic of South Africa, 1996, and (b) what processes does the Land Bank have in place to recoup the outstanding debt on such land or will the Land Bank need a bail-out under these circumstances?

Reply from the Mr N P Masipa to ask the Minister of Finance on 16 May 2020

: (b)(i) – As Chairperson of the Land Bank indicated in the 2018 Integrated Report, “If expropriation without Compensation were therefore to materialise without protection of the Bank’s rights as a creditor, we would be required to repay R9 billion immediately. A Cross Default clause would be triggered should we fail to pay when these debts fall due because of inadequate liquidity or lack ...

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